India's real-money gaming ban could put 2L jobs at risk
What's the story
India's real-money gaming (RMG) industry, a $25 billion sector employing over two lakh people directly and indirectly, is under threat from the Indian government's draft online gaming bill. The proposed legislation could drive users toward illegal offshore betting sites and shady operators while hurting tax revenues and user safety. Industry stakeholders have raised concerns over this potential shift in user behavior.
Financial impact
Offshore gambling could lead to massive revenue losses
Industry estimates suggest that offshore gambling operators could cost India over $4 billion in goods and services tax (GST). This is more than the $3.5 billion revenue generated by India's RMG industry, which contributes over ₹25,000 crore in annual taxes. Major players in this sector include Dream11, Games24x7, Nazara Technologies (Pokerbaazi), Gameskraft and Mobile Premier League (MPL).
Legislation details
Proposed bill seeks to ban online money games
The proposed online gaming bill, Promotion and Regulation of Online Gaming Bill 2025, seeks to prohibit offering or promoting online money games. An "online money game" is defined as any game played for a fee with the expectation of winning something in return. The draft also bans advertising/promoting any money game or betting activity in any form, including through online platforms.
Call for action
Gaming bodies urge Amit Shah for intervention
India's top three skill-gaming industry bodies, the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF), and the Federation of Indian Fantasy Sports (FIFS), have written to Home Minister Amit Shah, seeking his intervention. They have also requested an opportunity to present their case with solutions that "ensure responsible gaming while protecting users." This comes amid criticism over the lack of public consultation for this draft bill.
Industry apprehensions
Legal experts raise concerns over bill's implications
Jay Sayta, a technology and gaming lawyer, criticized the bill as "extremely problematic" and "not sustainable in law." He argued that it fails to distinguish between games of skill and chance. This concern is echoed by several Indian courts that have ruled blanket bans on online skill gaming violate Articles 14 and 19(1)(a). The overall policy unpredictability, including uncertainty over GST, could also affect IPOs in the sector.